Sign In
Last checked at 
16 May 2008 07:01
ο»Ώ
SMG plcΒ -Β Chairman'sΒ AGMΒ StatementΒ and IMSΒ - 16 May 2008Β
The followingΒ AGMΒ StatementΒ and IMS will be madeΒ toΒ itsΒ shareholders byΒ SMG'sΒ Chairman Richard Findlay atΒ the Company's Annual General Meeting, to be held at 10.30am this morning:-
"As mentioned in ourΒ PreliminaryΒ Results sixΒ weeks ago, 2007Β wasΒ a transformational yearΒ in whichΒ we rebuiltΒ a financially stable SMGΒ thatΒ can nowΒ developΒ it uniqueΒ broadcasting assetsΒ and deliver theΒ growth strategyΒ we have promised.
In terms of trading,Β sinceΒ our last updateΒ on 3Β April,Β stvΒ has continuedΒ toΒ outperformΒ the ITV network,Β both inΒ nationalΒ salesΒ andΒ inΒ regional sales.Β We expectΒ regional salesΒ to continueΒ double digit growth this month andΒ inΒ June.Β In radio there has been some volatility,Β withΒ Q1 growth of 5%Β but a weakerΒ Q2,Β reflecting the overall radio market.Β In Cinema, the Q1 revenues were down 10%Β and thisΒ patternΒ continued in April and May,Β due toΒ aΒ weak film market.Β However, we expect theΒ strongerΒ summer film slateΒ to deliverΒ growthΒ of 18%Β inΒ June.
The sale process of Virgin RadioΒ continuesΒ to progress andΒ weΒ willΒ make an announcementΒ in due course.Β Our cinema advertising business,Β Pearl & Dean,Β remainsΒ non-core andΒ we continue to actively pursue appropriate options for this business.Β We believe that changes inΒ theΒ industry, and the current OFT review, areΒ creatingΒ a more positive environment for the disposal.
In our core TV business, weΒ are progressing well in theΒ key growth areasΒ thatΒ are ourΒ focus for 2008 and beyond.Β We've already madeΒ substantialΒ reductions inΒ our cost base and areΒ continuing to improve the efficiency of the business.Β In content, following our biggest ever commissionΒ ofΒ TaggartΒ for delivery in 2008,Β we've further strengthened the senior teamΒ andΒ areΒ delighted that Alan Clements, one of theΒ UK's top programme makers,Β will be joining us as Director of Content in September.Β
The boardΒ and I remainΒ totally committed toΒ executingΒ ourΒ strategy andΒ deliveringΒ value for shareholders; weΒ are confident the business now has a strong platformΒ from whichΒ to outperform in difficult market conditions.Β The historic debt problem has been solved. Non-core business disposal is progressing. Broadcasting has 20-25% lowerΒ controllableΒ costs than a year ago, which, combined with further efficiency improvements, provides robustness in the face of uncertain advertising markets.Β Regional advertising,Β whichΒ has yet toΒ achieve its full potential, is a major area of growthΒ asΒ weΒ successfullyΒ acquireΒ our "natural"Β market share. Content has had a strong year to date, andΒ withΒ Alan Clements' leadership, we can fulfil its growth potential. Relaunching the stv portalΒ - stv.tv -Β this summer will allow us to properly monetise our audience reach and online content rights.Β Β
Β
The Board's outlook for the year remains unchanged. We will provide aΒ detailedΒ update onΒ the execution of thisΒ growth strategyΒ at theΒ investor dayΒ we are holdingΒ on 24 June.Β
Your company occupies a unique place within the Scottish media landscape, and now has theΒ people and the structureΒ toΒ punch well above its weight within its home market and further afield."
AnΒ update on theΒ financial and businessΒ performance of the strategy will be given at Company's Interim Results in August 2008.Β
Enquiries:
SMG plc
George Watt, Chief Financial Officer, SMG plc -Β 0141 300 3066
Debbie Johnston, Head of Communications, SMG plcΒ -Β 0141 300 3168
Brunswick
Simon SporborgΒ /Β James Hogan.Β -Β 020 7404 5959
Follow the stocks
